Netflix Wins Deal to Stream New Disney Films Starting in 2016

Streaming a galaxy far, far away. Photo: Alex Washburn/Wired

Disney is giving Netflix exclusive first home distribution rights to all of its first-run animated and live-action films beginning in 2016, meaning Pixar blockbusters, Avengers follow-ups and a new generation of Star Wars films will all stream over the internet long before HBO and other cable channels get a taste.

The deal, announced Tuesday, makes Disney the first major studio to stream its movies to TV viewers rather then distribute them through premium cable channels, and brings Netflix closer to dominating the streaming world. In securing the exclusive, Netflix wooed Disney away from Starz.

“This deal will bring to our subscribers, in the first pay TV window, some of the highest-quality, most imaginative family films being made today,” Ted Sarandos, Chief Content Officer at Netflix, said in a statement. “It’s a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen.”

The move gives Netflix a clear content advantage over competitors Hulu Plus and Amazon Instant Video, one that will grow even stronger when Disney completes its $4.05 billion purchase of Lucasfilm, which federal anti-trust regulators approved Tuesday.

All of this underscores the growing importance of streaming video for Hollywood, and bolsters Netflix’s plan to become the HBO of streaming. It’s deal to secure dibs on films from one of the top studios in Hollywood follows its move into exclusive content like Arrested Development and original content like House of Cards.

Currently Starz has access to the initial pay-TV run of Disney movies. That deal ends in 2015. Netflix had a deal with Starz to stream Disney and Sony Pictures films that ended in February of 2012. The partnership ended at a time when Netflix was still reeling from the PR nightmare of Qwikster, it’s short-lived idea to separate the DVD and streaming business.